Risk profile of crypto markets similar to oil and tech: Coinbase
— Market cap, July 6, Ico, Looming recession, Prices, Digital assets today share, Risk, Silver, Twitter last week, Erik voorhees — 1 min read
Bitcoin and other digital assets share a similar risk profile to commodities such as oil and gas, and tech and pharmaceutical stocks, according to analysis from Coinbase’s chief economist. The observation comes from a blog post from chief economist Cesare Fracassi on July 6, noting that the “correlation between the stock and crypto-asset prices has risen significantly” since the 2020 pandemic. Two-thirds of the recent decline in crypto prices are the result of macro factors — such as inflation and a looming recession — the economist said. The most appropriate stock comparison to Bitcoin in terms of volatility and market cap was the electric car manufacturer Tesla (TSLA) The economist added that Bitcoin, on the other hand, is more comparable to electric car Source